UNCLASSIFIED Date: February 2015 Exhibit R-2, RDT&E Budget Item Justification: PB 2016 Navy Appropriation/Budget Activity 1319: Research, Development, Test & Evaluation, Navy / BA 7: Operational Systems Development COST ($ in Millions) Prior Years FY 2014 FY 2015 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization FY 2016 Base FY 2016 OCO FY 2016 Total FY 2017 FY 2018 FY 2019 Cost To FY 2020 Complete Total Cost Total Program Element 0.000 - 5.000 150.854 - 150.854 220.219 108.038 41.027 42.181 Continuing Continuing 2939: RQ-4 Modernization 0.000 - 5.000 150.854 - 150.854 220.219 108.038 41.027 42.181 Continuing Continuing Program MDAP/MAIS Code: 373 Note MQ-4C Triton RDTE funding for modernization has been segregated into a new program element (from PE 0305220N to PE 0305421N) in order to satisfy Congressional direction for increased transparency. In the FY2015 Appropriations Act, Congress limited the amount of FY2015 funding in the modernization line (PE 0305421N) to $5M until a review of the capability development document is completed by the Joint Requirements Oversights Council (JROC). In concert with completion of the JROC review, the Navy will request a reprogramming from Congress to move the remaining required FY15 funding from PE 0305220N into PE 0305421N in order to maintain the Triton Multi-Intelligence phased capability upgrade schedule. A. Mission Description and Budget Item Justification MQ-4C Triton Unmanned Air System (UAS). The popular name Triton was approved for the MQ-4C UAS in June 2012, designating the RQ-4 Broad Area Maritime Surveillance (BAMS) UAS as the MQ-4C Triton. The MQ-4C Triton is a high altitude-long endurance UAS designed to provide Fleet and combatant commanders with persistent maritime Intelligence, Surveillance and Reconnaissance (ISR) of nearly all the world's high-density sea-lanes, littorals, and areas of national interest. Teamed with its manned-capability counterpart, the P-8A, Triton will be a key component of the Navy's family of systems to achieve maritime domain awareness. MQ-4C Triton will seek to leverage Maritime Patrol and Reconnaissance Force manpower, training and maintenance efficiencies. The MQ-4C Triton features sensors designed to provide near worldwide coverage through a network of five orbits inside and outside continental United States, with sufficient air vehicles to remain airborne for 24 hours a day, 7 days a week, out to ranges of 2000 nautical miles. Onboard sensors will provide detection, classification, tracking and identification of maritime targets and include maritime radar, electro-optical/infra-red and Electronic Support Measures systems. Additionally, the MQ-4C will have a communications relay capability designed to link dispersed forces in the theater of operations and serve as a node in the Navy's FORCEnet strategy. Tacticallevel data analysis will occur in real-time at shore-based mission control sites connected to the air vehicle via satellite communications. Further intelligence exploitation can be conducted at Fleet shore-based sites or aboard aircraft carriers and other ships. The MQ-4C Triton UAS will implement phased capability upgrades within the ongoing acquisition program to pace capability with rapidly evolving technologies and threats to ensure the Navy maintains persistent ISR dominance through the system's lifecycle, and to support the OPNAV N2/N6 Intelligence, Surveillance, Reconnaissance and Targeting transition plan. System upgrades will include Multi-Intelligence capabilities, Counter Electronic Attack upgrades, a more robust electronic support capability and continue improvements to baseline mission system payloads. PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 1 of 11 R-1 Line #227 UNCLASSIFIED Date: February 2015 Exhibit R-2, RDT&E Budget Item Justification: PB 2016 Navy Appropriation/Budget Activity R-1 Program Element (Number/Name) 1319: Research, Development, Test & Evaluation, Navy / BA 7: Operational PE 0305421N / RQ-4 Modernization Systems Development MQ-4C will play a significant role in the Sea Shield and FORCEnet pillars of Sea Power 21. In its Sea Shield role, the system will rely on its key attribute of persistence to provide the supported combatant command or fleet commander with unparalleled situational awareness of the maritime battle space as it develops and sustains the common operational tactical picture. The system will also serve as a Fleet response plan enabler, while acting as a trip wire for intelligence preparation of the environment. Additionally, Triton Unmanned Air System will be a FORCEnet enabler and relay platform, directly connected to both the Global Information Grid and the Distributed Common Ground System-Navy information backbone. B. Program Change Summary ($ in Millions) Previous President's Budget Current President's Budget Total Adjustments • Congressional General Reductions • Congressional Directed Reductions • Congressional Rescissions • Congressional Adds • Congressional Directed Transfers • Reprogrammings • SBIR/STTR Transfer • Rate/Misc Adjustments FY 2014 FY 2015 FY 2016 Base FY 2016 OCO FY 2016 Total - - - - - - - - - - - - 5.000 5.000 - - - - 5.000 - - - - 150.854 150.854 - - - - 150.854 150.854 150.854 - 150.854 Change Summary Explanation Technical: MQ-4C Triton RDTE funding for modernization, which includes Multi-Intelligence capabilities, has been segregated into a new program element (PE 0305421N) in order to satisfy Congressional direction for increased transparency. Schedule: N/A PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 2 of 11 R-1 Line #227 UNCLASSIFIED Date: February 2015 Exhibit R-2A, RDT&E Project Justification: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 COST ($ in Millions) 2939: RQ-4 Modernization Quantity of RDT&E Articles R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization Prior Years FY 2014 - FY 2015 FY 2016 Base FY 2016 OCO FY 2016 Total FY 2017 Project (Number/Name) 2939 / RQ-4 Modernization FY 2018 FY 2019 - 5.000 150.854 - 150.854 220.219 108.038 41.027 - - - - - - - - Cost To FY 2020 Complete Total Cost 42.181 Continuing Continuing - A. Mission Description and Budget Item Justification MQ-4C Triton Unmanned Air System (UAS). The MQ-4C Triton is a high altitude-long endurance UAS designed to provide Fleet and combatant commanders with persistent maritime Intelligence, Surveillance and Reconnaissance (ISR) of nearly all the world's high-density sea-lanes, littorals, and areas of national interest. Teamed with its manned-capability counterpart, the P-8A, Triton will be a key component of the Navy's family of systems to achieve maritime domain awareness. MQ-4C Triton will seek to leverage Maritime Patrol and Reconnaissance Force manpower, training and maintenance efficiencies. The MQ-4C Triton features sensors designed to provide near worldwide coverage through a network of five orbits inside and outside continental United States, with sufficient air vehicles to remain airborne for 24 hours a day, 7 days a week, out to ranges of 2000 nautical miles. Onboard sensors will provide detection, classification, tracking and identification of maritime targets and include maritime radar, electro-optical/infra-red and Electronic Support Measures systems. Additionally, the MQ-4C will have a communications relay capability designed to link dispersed forces in the theater of operations and serve as a node in the Navy's FORCEnet strategy. Tactical-level data analysis will occur in real-time at shore-based mission control sites connected to the air vehicle via satellite communications. Further intelligence exploitation can be conducted at Fleet shore-based sites or aboard aircraft carriers and other ships. The MQ-4C Triton UAS will implement phased capability upgrades within the ongoing acquisition program to pace capability with rapidly evolving technologies and threats to ensure the Navy maintains persistent ISR dominance through the system's lifecycle, and to support the OPNAV N2/N6 Intelligence, Surveillance, Reconnaissance and Targeting transition plan. System upgrades will include Multi-Intelligence capabilities, Counter Electronic Attack upgrades, a more robust electronic support capability and continue improvements to baseline mission system payloads. MQ-4C will play a significant role in the Sea Shield and FORCEnet pillars of Sea Power 21. In its Sea Shield role, the system will rely on its key attribute of persistence to provide the supported combatant command or fleet commander with unparalleled situational awareness of the maritime battle space as it develops and sustains the common operational tactical picture. The system will also serve as a Fleet response plan enabler, while acting as a trip wire for intelligence preparation of the environment. Additionally, Triton UAS will be a FORCEnet enabler and relay platform, directly connected to both the Global Information Grid and the Distributed Common Ground System-Navy information backbone. B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) Title: Product Development FY 2014 FY 2015 - 4.279 - - Articles: Description: MQ-4C Triton UAS modernization effort for incorporation of phased capability upgrades. The prime contractor is responsible for integration of upgrades into the Triton UAS including associated PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 3 of 11 R-1 Line #227 FY 2016 FY 2016 FY 2016 Base OCO Total 144.433 - 144.433 - - - UNCLASSIFIED Date: February 2015 Exhibit R-2A, RDT&E Project Justification: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) management, engineering and logistics activities. Capability upgrades will also include development of system payloads directly with original equipment manufacturers. Project (Number/Name) 2939 / RQ-4 Modernization FY 2014 FY 2015 FY 2016 Base FY 2016 OCO FY 2016 Total FY 2014 Accomplishments: N/A FY 2015 Plans: Initiate development of phased capability upgrades, including Multi-Intelligence capabilities in support of the OPNAV N2/N6 Intelligence, Surveillance, Reconnaissance and Targeting transition plan. FY 2016 Base Plans: Funding increases from FY15 to FY16 to continue development of phased capability upgrades, including Multi-Intelligence capabilities in support of the OPNAV N2/N6 Intelligence, Surveillance, Reconnaissance and Targeting transition plan. Funding includes acquisition of development assets for capability upgrades including electro-optical/infra-red, Signals Intelligence (SIGINT) High Band and SIGINT Low Band systems. FY 2016 OCO Plans: N/A Title: ILS, Support, Studies & Analysis Articles: - - Description: Integrated Logistics Support, Studies and Analysis. FY 2014 Accomplishments: N/A FY 2015 Plans: Integrated logistics support, technical engineering services, sensor risk reduction, logistics supportability analyses and environmental planning, modeling and simulation, development of manpower and basing assessments, and development of technical data to support fielding of the MQ-4C Triton Unmanned Aircraft System (UAS) capabilities. FY 2016 Base Plans: Integrated logistics support, technical engineering services, sensor risk reduction, logistics supportability analyses and environmental planning, modeling and simulation, development of manpower and basing assessments, and development of technical data to support fielding of the MQ-4C Triton UAS capabilities. FY 2016 OCO Plans: PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 4 of 11 R-1 Line #227 0.400 - 1.608 - - - 1.608 - UNCLASSIFIED Date: February 2015 Exhibit R-2A, RDT&E Project Justification: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) FY 2014 N/A Title: Test & Evaluation (T&E) Project (Number/Name) 2939 / RQ-4 Modernization Articles: FY 2015 FY 2016 Base FY 2016 OCO FY 2016 Total - - - - 3.800 - - - 3.800 - - - 0.321 - 1.013 - - - 1.013 - Description: T&E efforts. FY 2014 Accomplishments: N/A FY 2015 Plans: N/A FY 2016 Base Plans: Begin Developmental Testing and Operational Testing support activities to allow test and fielding of the MQ-4C Triton Unmanned Air System phased capability upgrades in accordance with the program schedule. FY 2016 OCO Plans: N/A Title: Program Management (PM) Articles: Description: PM support and travel. FY 2014 Accomplishments: N/A FY 2015 Plans: PM support and travel, development of milestone and acquisition-related documentation, capability refinement and open systems architecture development, resource justification, affordability assessments and cost analyses, risk reduction and risk management, system integration and interoperability planning, technology maturity reviews, program protection planning, corrosion prevention planning, and joint and international cooperation efforts. FY 2016 Base Plans: Continue the following: PM support and travel, development of milestone and acquisition-related documentation, capability refinement and open systems architecture development, resource justification, affordability assessments and cost analyses, risk reduction and risk management, system integration and interoperability PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 5 of 11 R-1 Line #227 UNCLASSIFIED Date: February 2015 Exhibit R-2A, RDT&E Project Justification: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) Project (Number/Name) 2939 / RQ-4 Modernization FY 2014 planning, technology maturity reviews, program protection planning, corrosion prevention planning, and joint and international cooperation efforts. FY 2015 FY 2016 Base FY 2016 OCO FY 2016 Total FY 2016 OCO Plans: N/A - Accomplishments/Planned Programs Subtotals C. Other Program Funding Summary ($ in Millions) Line Item • RDT&E/0305220N: RQ-4 UAV (MQ-4C Triton) • APN-4/044200: RQ-4 UAV (Triton UAV) • APN-6/044200: RQ-4 UAV (Triton UAV) • OMN/1D4D: Weapons Maintenance • OMN/1A1A: Mission and Other Flight Operations • MILCON/0212176N: Facilities New Footprint - Fleet Ops • MILCON/0712876N: Facilities New Footprint - Main and Prod • MILCON/0815976N: Facilities New Footprint - Training • MILCON/0203176N: Facilities Restoration and Mod • MILCON/0816376N: Facilities New Footprint - T&E • MILCON/0805976N: Facilities Restoration and Mod-Training Remarks PE 0305421N: RQ-4 Modernization Navy 5.000 150.854 - 150.854 FY 2014 375.235 FY 2015 451.442 FY 2016 Base 227.188 FY 2016 OCO - FY 2016 Total 227.188 FY 2017 5.208 FY 2018 - FY 2019 - Cost To FY 2020 Complete Total Cost - - 3,184.123 - 67.670 548.836 - 548.836 582.360 635.984 704.135 718.463 7,096.336 10,353.784 - - 153.954 - 153.954 110.263 105.532 6.758 - - - - - 5.738 30.153 32.886 35.338 Continuing Continuing - - - - - - 2.216 12.773 44.119 Continuing Continuing 17.469 - 8.296 - 8.296 71.091 - - - - 129.001 - - 40.641 - 40.641 - - - - - 40.641 38.031 - - - - - - 28.118 - - 82.707 - - - - - - - - - - 20.753 - - - - - - - - - - 33.034 - - 2.974 - 2.974 - - - - - 2.974 UNCLASSIFIED Page 6 of 11 R-1 Line #227 6.881 283.685 667.073 UNCLASSIFIED Date: February 2015 Exhibit R-2A, RDT&E Project Justification: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization Project (Number/Name) 2939 / RQ-4 Modernization D. Acquisition Strategy The MQ-4C Triton acquisition approach encompasses delivery of detection, tracking, imaging and data dissemination capabilities at Initial Operational Capability (IOC) with activities to enhance sensor and system performance via phased capability upgrades for post IOC delivery as part of the Triton acquisition program. This approach of phased capability upgrades within the acquisition program enables MQ-4C to pace capability with rapidly evolving technologies and threats to ensure the Navy maintains persistent Intelligence, Surveillance and Reconnaissance dominance through the system's lifecycle. The MQ-4C Triton program office is pursuing joint efficiency with the Air Force on the Global Hawk Unmanned Aircraft System (UAS). However, the integration of the Triton UAS into the Maritime Patrol Reconnaissance Force and the unique maritime sensors employed dictate a Navy-led acquisition program focused on joint efficiencies, where possible. E. Performance Metrics Successfully achieve Milestone C, Integrated Test, Operational Evaluation and IOC. PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 7 of 11 R-1 Line #227 UNCLASSIFIED Date: February 2015 Exhibit R-3, RDT&E Project Cost Analysis: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization Product Development ($ in Millions) Cost Category Item Contract Method & Type FY 2014 Performing Activity & Location Prior Years Award Date Cost Primary Hardware Development C/CPFF Northrop Grumman : Rancho Bernardo, CA Systems Engineering Various Various : Various 0.000 - NAWC-AD : Patuxent River, MD 0.000 - Systems Engineering WR FY 2015 0.000 - Award Date Cost 3.379 Apr 2015 - 0.900 Jan 2015 FY 2016 Base FY 2016 OCO Award Date Cost Project (Number/Name) 2939 / RQ-4 Modernization Award Date Cost FY 2016 Total Cost To Complete Cost Total Cost Target Value of Contract 105.694 Nov 2015 - 105.694 302.994 412.067 412.067 2.000 Nov 2015 - 2.000 7.555 9.555 - 9.739 Nov 2015 - 9.739 31.473 42.112 - Primary Hardware Development SS/FFP Raytheon : McKinney, TX 0.000 - - 10.000 Feb 2016 - 10.000 - 10.000 10.000 Primary Hardware Development C/CPFF Sierra Nevada Corporation : Beaver Creek, OH 0.000 - - 9.500 Jan 2016 - 9.500 - 9.500 9.500 Primary Hardware Development C/CPFF Boeing Argon ST : Fairfax, VA 0.000 - - 7.500 Nov 2015 - 7.500 - 7.500 7.500 0.000 - 4.279 - 144.433 342.022 490.734 - Subtotal Support ($ in Millions) Cost Category Item FY 2014 Contract Method & Type Performing Activity & Location Prior Years FY 2015 Award Date Cost 144.433 Award Date Cost Development Support Various Various : Various 0.000 - - Integrated Logistics Support Various Various : Various 0.000 - - Integrated Logistics Support WR NAWC-AD : Patuxent River, MD 0.000 - 0.400 Jan 2015 0.000 - 0.400 Subtotal Test and Evaluation ($ in Millions) Cost Category Item Developmental Test & Evaluation Contract Method & Type Various Performing Activity & Location Various : Various PE 0305421N: RQ-4 Modernization Navy FY 2014 Prior Years 0.000 Cost - Award Date Cost - UNCLASSIFIED Page 8 of 11 Award Date Cost FY 2016 Total Cost To Complete Cost Total Cost Target Value of Contract - 0.508 1.300 1.808 - - - 3.710 3.710 - 1.100 Nov 2015 - 1.100 4.807 6.307 - 1.608 - 1.608 9.817 11.825 - - Award Date Cost FY 2016 OCO 0.508 Nov 2015 FY 2015 Award Date FY 2016 Base FY 2016 Base Cost FY 2016 OCO Award Date Award Date Cost 1.150 Nov 2015 - R-1 Line #227 FY 2016 Total Cost 1.150 Cost To Complete 5.428 Total Cost 6.578 Target Value of Contract - UNCLASSIFIED Date: February 2015 Exhibit R-3, RDT&E Project Cost Analysis: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization Test and Evaluation ($ in Millions) Cost Category Item Developmental Test & Evaluation Operational Test & Evaluation Developmental Test & Evaluation Contract Method & Type FY 2014 Performing Activity & Location Prior Years Travel Program Management Support Cost Award Date Cost Cost FY 2016 OCO Award Date FY 2016 Total Award Date Cost Cost Cost To Complete Total Cost Target Value of Contract 0.000 - - 1.400 Nov 2015 - 1.400 35.589 36.989 - Various Various : Various 0.000 - - 0.250 Nov 2015 - 0.250 7.900 8.150 - MIPR DITCO : Various 0.000 - - 1.000 Nov 2015 - 1.000 5.398 6.398 - 0.000 - - 3.800 - 3.800 54.315 58.115 - WR Management Services ($ in Millions) Cost Category Item Award Date FY 2016 Base NAWC-AD : Patuxent River, MD Subtotal Program Management FY 2015 Project (Number/Name) 2939 / RQ-4 Modernization Contract Method & Type FY 2014 Performing Activity & Location Prior Years FY 2015 Award Date Cost Cost Award Date FY 2016 Base Cost FY 2016 OCO Award Date FY 2016 Total Award Date Cost Cost Cost To Complete Various : Various 0.000 - 0.100 Jan 2015 0.163 Nov 2015 - 0.163 Allot Various : Various 0.000 - 0.025 Jan 2015 0.050 Nov 2015 - 0.050 Continuing Continuing Continuing C/CPFF Ausley : Lexington Park, MD 0.000 - 0.196 Jan 2015 0.800 Nov 2015 - 0.800 2.851 3.847 3.847 0.000 - 0.321 1.013 - 1.013 - - - Prior Years Project Cost Totals 0.000 FY 2014 - FY 2015 5.000 FY 2016 Base 150.854 FY 2016 OCO FY 2016 Cost To Total Complete - Remarks MQ-4C Triton RDTE funding for modernization has been segregated into a new program element (from PE 0305220N to PE 0305421N) in order to satisfy Congressional direction for increased transparency. All Triton modernization funding was previously included in PE 0305220N PU 4020 MQ-4C Triton. PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 9 of 11 R-1 Line #227 150.854 - 2.548 Target Value of Contract Various Subtotal 2.285 Total Cost Total Cost - - Target Value of Contract - UNCLASSIFIED Date: February 2015 Exhibit R-4, RDT&E Schedule Profile: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 PE 0305421N: RQ-4 Modernization Navy R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization UNCLASSIFIED Page 10 of 11 Project (Number/Name) 2939 / RQ-4 Modernization R-1 Line #227 UNCLASSIFIED Date: February 2015 Exhibit R-4A, RDT&E Schedule Details: PB 2016 Navy Appropriation/Budget Activity 1319 / 7 R-1 Program Element (Number/Name) PE 0305421N / RQ-4 Modernization Project (Number/Name) 2939 / RQ-4 Modernization Schedule Details Start Events by Sub Project End Quarter Year Quarter Year Acquisition Milestones: Milestone C 1 2016 1 2016 Acquisition Milestones: Full Rate Production 2 2018 2 2018 Acquisition Milestones: Initial Operational Capability 3 2018 3 2018 System Development: Phased Capability Upgrades - Multi-INT 2 2015 3 2020 System Development: System Development and Demonstration 1 2014 3 2020 Test & Evaluation Activities: Integrated Test (Combined/Developmental/Operational) 1 2014 2 2017 Test & Evaluation Activities: Follow-on Integrated Test 2 2018 4 2020 Test & Evaluation Activities: Operational Test Readiness Review 3 2017 3 2017 Test & Evaluation Activities: OPEVAL 4 2017 1 2018 Production Milestones: Contracts: Low Rate Initial Production 1 Contract Award 2 2016 2 2016 Production Milestones: Contracts: Low Rate Initial Production 2 Contract Award 2 2017 2 2017 Production Milestones: Contracts: Full Rate Production Lot 3 Contract Award 2 2018 2 2018 Production Milestones: Contracts: Full Rate Production Lot 4 Contract Award 2 2019 2 2019 Production Milestones: Contracts: Full Rate Production Lot 5 Contract Award 2 2020 2 2020 Production Milestones: Deliveries: System Demonstration Test Articles Delivery 1 2017 2 2017 Production Milestones: Deliveries: Low Rate Initial Production Lot 1 Delivery 2 2018 1 2019 Production Milestones: Deliveries: Low Rate Initial Production Lot 2 Delivery 2 2019 1 2020 Production Milestones: Deliveries: Full Rate Production Lot 3 Delivery 2 2020 4 2020 Proj 2939 PE 0305421N: RQ-4 Modernization Navy UNCLASSIFIED Page 11 of 11 R-1 Line #227